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91Ó°ÊÓ

Financial Planning A retired couple has up to \(50,000 to

invest. As their financial adviser, you recommend that they

place at least \)35,000 in Treasury bills yielding 1% and at

most $10,000 in corporate bonds yielding 3%.

(a) Using x to denote the amount of money invested in

Treasury bills and y the amount invested in corporate

bonds, write a system of linear inequalities that describes

the possible amounts of each investment.

(b) Graph the system and label the corner points.

Short Answer

Expert verified

(a)The inequalities of the retired couple

x≥0y≥0x+y≤50000y≤10000x≥35000

(b)

Step by step solution

01

step 1. introduction

(a) the couple has total invested the total money in two different x and y of 50000

we have first inequalityx+y≤50000

02

step 2.investments made

The couple made investment at least of 35000 in treasury bills so the inequality is x≥35000

another investment not more than 10000 in corporate bonds so the inequality isy≤10000

both the investments are not zero so x≥0&y≥0

03

step 3.inequalities

(a):x≥0y≥0x+y≤50000y≤10000x≥35000

04

step 4.plotting the graph

since x≥0&y≥0the graph lies on x-axis

we have already an inequality x+y≤50000

by using test point(0,0)

0+0≤500000≤50000

05

step 5.tesing the lines

y≤100000≤10000substitute point (0,0)

the graph includes origin the shaded region

x≥350000≥35000substitute point (0,0)

the graph does not include orgin

06

step 6.the resultant graph and corner points

The corner points are(35000,10000)(40000,10000)(35000,0)(50000,0)

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